China Investors Eye Extinct Sofia Steel Mill's Plot

A Chinese investor has voiced strong interest and preparedness to take over the insolvent and obsolete steel mill "Kremikovtzi" near the Bulgarian capital Sofia and turn it into a sprawling expo city similar to Shanghai.The news was reported Friday by the Bulgarian daily "Standard."

The mill's labor unions have confirmed the information saying the Chinese have visited the location several times and would take part in the second auction of the bankrupt steel giant, once considered the pride of the communist-era industry in Bulgaria, which will take place on November 5. The bid for the facilities starts at BGN 450 M. The Asian investor has decided to take part in the auction after meeting Prime Minister, Boyko Borisov.

They also hope to make a profit from selling to ailing facilities for scrap. The Mayor of the Kremikovtzi district has further said he was aware of the Chinese project and talks are pending to finalize details.
When there are no exhibits the new expo halls would be used as a logistic center for Chinese goods.

News source: novinite.com link: article

Serbia: Connecting business registers from 26 European countries

The Serbian Business Registers Agency (APR) announced that State Secretary for Economy and Privatisation from the Ministry of Economy and Regional Development Nebojsa Ciric opened the General Assembly of the European Business Register (EBR) today in Belgrade, an electronic network that connects national business registers from 26 European countries.

The host and organiser of the conference is the APR. Serbia has been a member of the EBR since 2007, and since 1 July last year it is technically connected to the EBR network. The EBR allows the exchange of more than 20 million items of official data on registered companies in the EU and five non-EU members, including Serbia.

The EBR is part of a fully integrated approach of the European Commission in the legislation designed to achieve regulations to promote transparent financial markets and to facilitate free movement of companies. The EBR makes it possible to obtain comparable, official company information from the countries connected to the network.

News source: EMG.rs link: article

Kosovo-US trade forum kicks off in New York

A Kosovo-U.S. trade and investment forum opened in New York, under the auspices of the Kosovo Embassy in Washington and the U.S. Developing Markets Associates. The forum offers information about possibilities for investing in Kosovo and will enable potential investors to meet with top Kosovo officials, including Economy and Finance Minister Ahmet Shala.

Kosovo Ambassador to Washington Avni Spahiu told Kosovo TV that after proclaiming independence, Kosovo now offers extremely favorable conditions for investments. The investors, according to him, will focus on Kosovo's great ore reserves, agriculture, infrastructure and young and qualified labor.
Kosovo Prime Minister Hashim Thaci was to attend the forum, but has abandoned the trip due to current political instability in Kosovo.

News source: EMG.rs link: article

Croatia’s ecological products for Europe

The interest in ecological production of agricultural and food products has increased considerably. Areas accommodating such production have increased from 51 hectares in 2002 to more than 20,000 hectares this year, with more than 1,000 producers.

This information was presented at the session of the Government, which submitted to the Parliament the draft bill on ecological production and ecological products labeling. There is a great demand for these products in the market, agriculture minister Petar Cobankovic said. He pointed out that ecological products labeling will be regulated as well, in order to prevent abuse and provide consumers with truly ecological products.

The bill regulates the use of the terms such as “organic”, “bio” and “eco”. It will provide Croatia’s producers with the same terms enjoyed by EU producers and create conditions for placement of ecological products in EU.

News source: Limun.hr link: article

Internet usage in Bosnia and Herzegovina records on the rise

In 2004, BiH had 585 000 Internet users and by 2009, that number was almost tripled. Based on data of the Communications Regulatory Agency of BiH (CRA), one in three citizens of BiH use Internet or 1.42 million by the end of 2009 (37 percent).  In the following period, CRA projects continued upward trend. The Internet usage has been growing steadily by around four per cent a year in the country.

News source: Balkans.com link: article

Prefab house BiH manufacturer plans to enter Slovenia and FYR Macedonia markets

The BiH manufacturer of prefabricated houses Lamina Inzenjering plans to enter next year the Slovenian and FYR Macedonian markets and expand its existing business abroad as its turnover rises. Lamina, which manufactures energy efficient wooden houses, has already operated in Austria, Croatia and Italy.  

The company also produces roof trusses and glued laminated timber under the Austrian Wolf System standard, which are used in the construction of sports hall, swimming pools, schools and farms.

News source: Balkans.com link: article

Piraeus Bank plans 800 mln euro rights issue

Piraeus Bank, Greece's fourth-largest lender, plans to issue new shares to raise about 800 million euros ($1.1 billion), a banking source with knowledge of the matter told Reuters on Friday. "The bank will seek to raise 800 million euros through a rights issue. An announcement is likely on Friday," the source said.

Piraeus will be the second Greek lender to opt for a big capital boost to strengthen its balance sheet, seeking to regain access to interbank funding.National Bank, Greece's biggest lender, raised 1.8 billion euros earlier in October, boosting its capital adequacy ratios.

Greek banks, hit by the country's debt crisis, have been shut out from wholesale funding markets as their bond portfolios were damaged by successive sovereign credit rating downgrades, forcing them to rely on the ECB. Piraeus, which is advised by Goldman Sachs, Merrill Lynch and UBS UBS.VX, last month withdrew an offer to buy government stakes in ATEbank  and Hellenic Postbank for 701 million euros in cash, saying the government was taking too long to make up its mind.

The move would have entailed raising cash. The rights issue will also better position Piraeus in view of anticipated consolidation in the sector. The government and the central bank have called on Greek banks to rethink strategy and consider forming stronger groups to cope with the effects of the country's debt crisis, fanning speculation that mergers and acquisitions will reshape the banking landscape.

News source: Reuters.com  link: article

EIB supports capacity increase of gas transmission network and RDI in automotive sector in Slovenia

The European Investment Bank (EIB) is providing two loans in Slovenia:

* EUR 100 million to finance investments aimed at increasing the capacity of the gas transmission  infrastructure to meet the growing demand for gas in the country and

* EUR 50 million to support projects of small and medium-sized companies in the automotive sector to develop components for new generations of energy efficient cars

Mr. Anton Rop, EIB Vice-President responsible for lending in Central Europe, including Slovenia, stated: “Both loans will support Slovenia’s efforts to upgrade the quality of the environment in the country by increasing the availability of cleaner energy resources such as gas and reducing emissions by using the new generation of more energy-efficient power-trains”. 

The loan of EUR 100 million will help to implement the 2010-2013 investment programme focused on upgrading the capacity of the existing gas transmission infrastructure to better meet the increase in gas demand. This involves the construction of some 235 km of pipelines and compression facilities across the country

The loan of EUR 50 million to the Slovene Export and Development Bank (SID) will co-finance small and medium-sized investments aimed at increasing the environmental sustainability and safety of passenger cars and commercial vehicles. This is expected to be achieved through the development of components or systems for new generations of energy-efficient power-trains, weight reduction or other means of reducing emissions from vehicles, or through active or passive safety systems.

This loan represents the continuation of the EIB’s successful cooperation with SID. In July 2009 the Bank provided a loan of EUR 380 million to SID. Part of this loan (EUR 80 million) focused on the development of new generation vehicle technology and car emissions reduction. It has been fully allocated to 19 projects.

News source: EIB link: article

RTOs boost EU annual economic growth by EUR 50 billion

European Research and Technology Organisations (RTOs) contribute EUR 50 billion to the EU economy, according to a new study published on October 27. The report, put together by European research organisation the Technopolis Group, reveals that in addition to boosting economic growth, RTOs help tackle key challenges facing Europe, such as the need to develop innovative renewable energy supplies. However, the study said the organisations remain poorly understood and warned that national governments are failing to fully exploit their potential. RTOs received 32% of the Sixth Framework Programme (FP6)'s funding, noted the report.

There are around 350 RTOs in Europe, including the Fraunhofer Gesellschaft in Germany, the CEA (France's Alternative Energies and Atomic Energy Commission ), VTT (the Technical Research Centre of Finland), TNO (the Netherlands Organization for Applied Scientific Research), and SINTEF (the Foundation for Scientific and Industrial Research) in Norway.

These organisations resemble universities in many senses, but distinguish themselves by focussing on applied research, and exploiting any resulting knowledge in industrial innovation and development projects. They are generally funded via a mixture of public subsidies - that let them develop their capabilities - and industrial income, which allows them to exploit these capabilities for the benefit of industry.

The new report, published on behalf of the European Trade Association of the Research and Technology Organisations (EARTO), found that the combined annual turnover for European RTOs was around EUR 23 billion, noting that if they were a European multinational, this impressive figure would place them in the top 100 of the FT-500 Europe, the list of Europe's top 500 companies. The study estimated the total annual economic impact of RTOs at between EUR 40 billion and EUR 50 billion, and said that the organisations benefited more than 100,000 customers annually, including national and regional governments, SMEs (small and medium-sized enterprises) and large companies. Moreover, the organisations are an important European employer with a combined workforce of more than 150,000 scientists, technicians and engineers.

News source: Cordis link: article

Turnover in retail trade, Slovenia, September 2010

In September 2010 volume turnover in retail trade up compared to August 2010. Compared to August 2010, in September 2010 the volume retail trade turnover increased by 0.8%. In the same comparison, the volume turnover in retail trade except automotive fuel increased by 1.3%; in retail trade with food, beverages and tobacco it was up by 5.4% and in retail trade with non-food products except automotive fuel it was down by 0.6%.

Compared to August 2010, in September 2010 the volume turnover in wholesale, retail trade and repair of motor vehicles and motorcycles increased by 0.5%.

In September 2010 volume retail trade turnover up compared to September 2009

Compared to September 2009, in September 2010 the volume retail trade turnover increased by 2.4%. In the same comparison the volume turnover in retail trade except automotive fuel increased by 0.1%; in retail trade with food, beverages and tobacco it was up by 0.8% and in retail trade with non-food products except automotive fuel it was down by 0.5%. Compared to September 2009, in September 2010 volume turnover in wholesale, retail trade and repair of motor vehicles and motorcycles increased by 12.6%.

News source: Statistical Office of the Republic of Slovenia link: publication

 

Macedonian Firms Hit Hard by Greek Railways Strike

Macedonian companies that rely heavily on railway transport to the Greek port of Thessaloniki have been hit hard by a five-day strike by Greek railway workers.

“We have 100 goods wagons at the [Macedonian-Greek] border waiting to be shipped out from Thessaloniki port,” says Jane Adamcevski, the head of the transport department of the Skopje-based steel processor Makstil.

The Greek railway workers started striking on Monday and have said they will continue until Friday. They are protesting against the Greek government's plans to privatise the state-owned railways company. Mitko Aleksov from the Industry Chamber of Macedonia told Balkan Insight that about half of Macedonia's imports and exports go through Greek railways, but he said it wasn't yet possible to estimate the damages incurred by the latest strikes.

"Companies from metal industry are suffering the most since the bulkiness of their goods prevents them from using trucks as an alternative,” he added.

Adamcevski from Makstil explained that the firms have no alternative route.

“The goods need two days to a week to go to and from the Burgas since we have no direct railway connection and we would have to transit via Serbia,” he says.

The Albanian port of Durres could serve as a possible alternative since it is the same distance as Thessaloniki, “but there is no railway to Albania”. Data from the Macedonian Association of Trade Chambers show that last year the Greek railworkers were on strike for a staggering total of 72 days. “The strikes by our southern colleagues are very frequent,” Jovica Trajanovski from the Macedonian Railways-Transport, the company that provides most rail transport between Macedonia and Greece for local businesses, told Balkan Insight.

“At the moment our work has ground to a halt,” he said. “We are not sure if all the businesses that use our services will come back once the strike is over.”  

News source: BalkanInsight link: article

Albania Places €300 Million Eurobond

Albanian Minister of Finance Ridvan Bode announced on Thursday that the country has sold, for the first time ever, €300 million in Eurobonds with a five year maturity for a yield of 7.5 per cent.

The sale, which was managed by Deutsche Bank AG and JPMorgan Chase & Co, was postponed in April due to the adverse effect of the Greek debt crisis on emerging market bonds. This is Albania’s third attempt to place Eurobonds after another effort in early 2009 was abandoned due to the global financial crisis.

According to the Ministry of Finance, the bonds will be used to pay-off a costly syndicated loan taken in 2009 to finance part of the Albania-Kosovo highway, the country’s largest public works project in decades. The refinancing of the loan will save Albania roughly €7 million.  

News source: BalkanInsight link: article

Business investment rate up to 20.4% in the euro area and 19.9% in the EU27

In the second quarter of 2010, in both the euro area (EA16) and the EU27, the seasonally adjusted business investment rate and profit share grew compared with the previous quarter. In the euro area, stocks remained almost unchanged after five quarters of destocking.

These data come from a detailed set of quarterly European sector accounts released by Eurostat, the statistical office of the European Union, and the European Central Bank (ECB).

Business investment rate up in both zones, but still at low levels. In the second quarter of 2010, the seasonally adjusted gross investment rate of non-financial corporations was 19.9% in the EU27, compared with 19.6% in the first quarter of 2010. In the euro area, the investment rate was 20.4% in the second quarter of 2010, compared with 20.1% in the previous quarter.

In the euro area, the gross investment rate of non-financial corporations increased due to gross fixed capital formation (investment) increasing faster (+2.7%) than value added (+1.2%). Stocks of materials, supplies and finished goods remained almost unchanged after five quarters of destocking (see table 2). Business profit share continues to recover in both zones

In the EU27, the gross profit share6 of non-financial corporations was 37.7% in the second quarter of 2010, compared with 37.2% in the first quarter of 2010. In the euro area, the profit share was 38.3% in the second quarter of 2010, compared with 38.0% in the previous quarter.

News source: Eurostat link: article

EBRD supports diversification of agribusiness in Romania

The EBRD is supporting the development of the Romanian rapeseed industry along its value chain, including oilseed crushing, refining and production of edible oil and biodiesel, with a €80 million syndicated financing package to Expur S.A., a local oilseed processing company.
Expur currently crushes rapeseed and sunflower seed, producing crude rapeseed oil, refined edible sunflower oil, as well as rapeseed and sunflower meal and biodiesel, for both domestic and export markets.

The EBRD financing will support Expur’s strategy to contribute to the development of the rape meal and biodiesel markets in Romania.  The increased demand for rapeseed as a raw material for these products would encourage local farmers to cultivate more of the crop for domestic use.
In addition, the increased availability of rape meal, as a more cost-effective alternative to imported expensive soy meal, would also support Romanian livestock producers in their efforts to reduce the cost of animal feed, thereby reducing the cost of meat for the Romanian consumer.
The €80 million EBRD package comprises a €20 million long-term loan to finance the upgrade of Expur’s crushing facility, and a €60 million working capital facility.  Half of each of the two loans will be for the Bank’s account, with the remaining amount syndicated to BRD (Société Générale Group) and Rabobank.

Expur was recently acquired by Saipol S.A.S., the French leader in oilseed crushing and vegetable oil refining. Saipol, which is part of Sofiprotéol’s Oilseed Division, processes rapeseed and sunflower into vegetable oil intended for human consumption, oil meal for animal feed, and by-products for sustainable energy and chemistry. Expur’s operating facilities and capacities strongly complement those of Saipol.

News source: EBRD link: article

Croatian Dioki confirms bid for Vinyls Italia sites

Croatian petrochemical producer Dioki has submitted a bid to buy the Ravenna and Porto Torres sites of Eni-owned Vinyls Italia, a Dioki spokeswoman said Wednesday. The Zagreb-based company submitted a bid before the October 22 deadline to buy the facilities, the spokeswoman said, without adding further details. According to Italian daily La Nuova Sardegna, two other bids have been presented to the Italian development ministry, which is handling the sale. No ministry spokesman was available to confirm the details.

Vinyls Italia, which formerly belonged to UK-based Ineos, went into receivership in May last year, forcing the closure of production facilities for polyvinyl chloride and other related products in Ravenna, Porto Maghera and Porto Torres, all in Italy. The government's industrial development ministry has since tried to sell the three sites through international tenders.

The other two bidders are reported by the newspaper to be a Swiss-based fund, which it did not name, and an Italian-led consortium, led by polyolefins distributor Industrie Generali. An official at the Samarate, Italy-based company declined to comment on the report. A previous attempt to sell the assets fell through in May this year when Qatari engineering company Ramco Trading and Contracting pulled out of the negotiations. La Nuova Sardegna said Ramco had been linked with the Swiss consortium that submitted a bid, but the company could not be reached for comment.
As part of the tender and in order to help push through the sale, Vinyls Italia's parent company Eni said it would supply vital raw materials and cede necessary assets to ensure a restart of the plants.

News source: Balkans.com link: article

Coca-cola, Milka and Argeta are biggest brands in former Yugoslav region

Coca-Cola, Milka and Argeta are the three strongest consumer brands in the former Yugoslav states, a new market research has found. The investigation was conducted between April and June in Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Kosovo, Macedonia and Montenegro. Together these states have a 22 million consumer strong market. On the list of the top 25 consumer brands, 15 are from the former Yugoslav region while the remaining ten represent world-wide multinational companies with long traditions.

In addition to the top three, others that feature on the list are Paloma, Fanta, Nivea, Vegeta spices, the vitamin drink Cedevita, Gillette, Smoki, Cockta, Plazma cookies, Pepsi, Negro candy, Domacica biscuits, Orbit gum, Kiki candy, Dorina chocolates and Snickers chocolates. The results show that the top 25 are products that are available all over the region.  Serbian brands have a slightly higher chance to make it onto the list because of the greater size of the Serbian market, the daily Vecernji List writes. All of the top 25 brands have been present on the market for a long time. The research was conducted on a sample of 1,000 to 1,500 persons between the ages of 15 and 65 in all of the states of former Yugoslavia.

News source: Croatiantimes.com link: article

New deadline for electronic cash registers in FBiH

The Electronic Cash Registers Commission of Federation extended yesterday a deadline for the introduction of electronic cash registers in this entity of BH, the finance ministry has announced.

Hotels, motels, restaurants, bars, petrol stations and pharmacies have until December 15 to introduce new registers, while the second group from the so-called Fiscalization Plan – retail and wholesale traders – were given a new deadline.

News source: Limun.hr link: article

Bulgaria Economy Forecast to Slip into Depression

The Bulgarian economy is bound to fall off an economic cliff and into a depression, which will last for several years, according to a leading Bulgarian financier and banking expert. Speaking in an interview for Klassa daily Emil Harsev said he is not as optimistic as Finance Minister Simeon Djankov, who claims this scenario can be avoided by implementing flexible and fast economic incentives. "The state provides no economic incentives such as maintaining the favorable tax system, cutting the red tape and reducing the administrative burden on the business," Harsev said. Bulgaria, the European Union's poorest country, faced its first recession in 12 years after a three-year lending boom stalled and foreign investments dried up. The recovery of the Bulgarian economy, which operates in a currency board regime, is lagging behind that of other Eastern European countries. The government has pledged to stick to a tight fiscal policy and keep the deficit below 3 % by the end of this year.

The cabinet adopted earlier this year a package of austerity measures, freezing public pays and pensions in a bid to reduce the bloating deficit. It revised up to 1% its economic growth forecast for this year, pinning its hopes on a boost in exports. At the beginning of October the International Monetary Fund wrapped up its two-week review and projected Bulgaria's economy to grow from 0% to 0.4% in 2010 and 2% in 2011. It said this year's inflation will be moderate, while the current account deficit is expected to fall below 3% of gross domestic product. The European Commission said last month that Bulgaria's economy is likely to start to recover towards the end of 2010 under the impact of the international cycle. Analysts from local think-tanks have warned that Bulgaria's economy is likely to continue to contract in the second half of this year and may fail to return to growth earlier than next year.

News source: Novinite.com link: article

Signing of minutes from negotiations of Serbia, Germany on development cooperation for 2010

Deputy Prime Minister Bozidar Djelic and Deputy Director General at the German Federal Ministry for Economic Cooperation and Development Ulla Mikota will sign minutes on negotiations of the governments of Germany and Serbia in the field of development cooperation for 2010 at 11.00 on 28 October at the government’s Press Room, Nemanjina 11.

The total value of Germany’s aid for 2010 is €123.65 million and will be used for realisation of projects in the years to come.  As part of bilateral development cooperation, Germany provides two forms of assistance to Serbia: financial (donations and loans) and technical (expert) assistance.

The funds from development assistance will be used for realisation of projects in three fields – improvement of public infrastructure (energy and water supply - €68.5 million), sustainable economic development and employment boosting (€52.35 million) and enhancing the capacity of public administration, promotion of democratic values and civic society (€2.8 million).

News source: EMG.rs link: article

FYRMacedonia improves credit rating

Rating agency "Fitch" said fyrMacedonia's credit rating has improved from negative into stable, as a result of high fiscal discipline, stability of public finance, low level of public debt, as well as keeping foreign currency reserves at a stable level. "According to 'Fitch', Macedonia has registered improvements in all those segments, as well as general conditions for doing business", said Vice Premier and Finance Minister Zoran Stavreski.

He added the rating's improvement was exceptionally good news, showing that efforts of the Government and all entities for enhancement of economic circumstances and stabilization of the economy have been noted by international rating agencies, such as "Fitch". FinMin Stavreski stressed the rating improvement represented a significant signal to investors, as well as in reducing costs for the future possible issuing of the Euro-bond.

"This is a significant signal for investors worldwide, whereas the positive change in the ratings demonstrates that the country is a favorable destination for investments", said Stavreski. According to him, each rating improvement would help reducing the interest margin of the Euro-bond, since Macedonia possesses sound economic policies, which have not been acknowledged in the country's Euro-bond thus far. "This comes as a result of the crisis in our surrounding, the crisis of a neighboring state and the region in general", underlined Stavreski.

News source: EMG.rs link: article

Businesses post 2.6% drop in R&D spending

EU companies cut their research and development (R&D) investments by 2.6% in 2009, the new Industrial R&D Investments Scoreboard reveals. It is the first time that business R&D investments have fallen in a number of years. It should be noted, however, that sales and profits fell by 10% and 21% respectively, and that R&D investment decisions for 2009 were taken in late 2008, at the height of the financial crisis. Under these circumstances, the fact that R&D investments fell so little demonstrates the importance of R&D to businesses.

Published annually by the European Commission's Joint Research Centre, the Industrial R&D Investment Scoreboard brings together information on the R&D investments of the world's top 1,400 companies.

According to the 2010 edition of the report, companies worldwide cut their R&D investments by an average of 1.9%, less than the EU figure. Analysing the figures by region reveals that US companies reduced their R&D spending by over 5%, while Asian businesses boosted their R&D investments.

The report also highlights large differences between sectors. For example, the pharmaceuticals sector cemented its position as the leading R&D investor, increasing R&D by 5.3%. Another sector boasting an increase in R&D spending is the alternative energy sector, which posted a 28.7% increase in R&D investments. One sector which was particularly hard hit by the financial crisis was the automobile and parts sector, and its R&D investments dropped by 11.6%. Also reporting a fall in R&D spending was the technology, hardware and equipment sector (down 6.4%).

News source: Cordis link: article

The "Great Outdoors" attracts many to Albania

International tourists are noticing Albania more and more, attracted to its unspoiled Mediterranean coastline and the quality-for-price value that it offers.

Tourism-oriented growth and development, often rampant and unchecked, is most visible in the capital city of Tirana and along the coast. Roads are widening into protected areas and high-rise hotels obstruct previously natural landscapes. Such unregulated growth threatens the same natural and cultural endowments upon which the tourism industry depends.

Development organizations such as the UNDP and USAID recognize the need to implement a more sustainable tourism strategy that conserve Albania’s natural environment and cultural heritage while increasing quality of life for local people. Tour operators such as Outdoor Albania brand themselves by their commitment to these principles. In some of the more isolated regions of the country, such as the alpine north, communities and small businesses are working together to harness tourism as a means of much-needed sustainable development for the area.

Outdoor Albania offers culture and adventure trips to bridge the gap carefully between tourism development and this geographically remote mountainous area. Its destinations are tiny rural villages such as Vermosh, Valbona, and Theth. Its goal is to develop trips and itineraries that will bring economic benefits to local people and keep Albania’s environment pristine for future recreation and enjoyment.

Both fixed and tailor-made tours to the Albanian Alps are available. One of the most popular tours is the 5-day mountain trek and village guesthouse tour. The highlights of the itinerary include transport to the valley of Valbona via local ferry on lake Koman through the Drin canyon, and guided trekking along a mountain pass between the valley of Valbona to the village of Theth accompanied by luggage-bearing mountain horses.

The cultural aspect of the tours is accommodation with local families who offer their homes as guesthouses to travelers. Hospitality has been a pillar of northern Albanian culture for centuries, as the oral tradition of the area mandates the welcoming of strangers into one’s home. By lodging with local families, tourists get a taste of authentic local dishes that the families prepare. They also get a glimpse of the mountain life and agricultural livelihoods that Albanian northerners have been practicing for generations. The tall stone and wood-shingle architecture of the village guesthouses is traditional, characteristic of the northern region, and highly photogenic.

As the northern Alpine region emerges in the guidebooks and on the maps for culture- and adventure-seeking tourists, demand for infrastructure and services such as transportation is increasing in the area. Outdoor Albania recognises the need to meet this demand in a way that will benefit the local people of the area and preserve the environment for future generations. Rather than encouraging hasty construction in the area, OA utilizes the local guesthouse accommodations that are already available and eager for tourists. OA also utilizes local transportation and trekking that respect the natural environment rather than threaten it. In these rural northern villages, the doors are open to the Outdoor Albania brand of tourism

News source: Outdoor Albania article provided by: Pellumb Qosej

Alpha Bank Romania and Serbia - SME and Corporate Credit Line

The EBRD has signed loans worth a total of €200 million for Alpha Bank (ABG) subsidiaries in Romania and Serbia, as part of a package approved in July 2010. The aim is to provide medium and long-term debt financing through ABG’s subsidiaries for on-lending to private businesses operating in the three countries.
The EBRD investments are part of the Joint International Financial Institutions Action Plan set up by the EBRD, the World Bank Group and the European Investment Bank (EIB) to provide over €24 billion in support of the banking sectors in the region and to fund lending to businesses hit by the global crisis.

The credit lines will contribute to the transition process by maintaining an essential flow of lending to enterprises at a time when the availability of credit, particularly to SMEs and corporates has been constrained.

Alpha Bank group subsidiaries in two countries of EBRD’s region. 
Alpha Bank group is an international banking group with a strong and long-standing commitment to the region with a presence in many countries in Central and South-Eastern Europe, with a total of 6,001 employees servicing its clients through more than 564 branches in this region as oh end-June 2010.

News source: EBRD link: article

Merkur suggest recapitalization worth EUR 85 million

Proposal for financial restructuring of Slovenian Merkur has been submitted to the court yesterday. It schedules recapitalization worth at least EUR 85 million. The recapitalization should be conducted through debt for equity swap. The price of the share stands at EUR 57.5 for ordinary creditors, while privileged creditors will have to pay EUR 40 per share.

Creditors who decide against the debt for equity swap will be paid back 60 percent of the debt the company owes them in the next five years. "This proposal is a compromise which means that everyone will loose something and have to renounce something so Merkur could continue normal operation", announced the company.

News source: Limun.hr link: article

Vojvodina most attractive location for foreign investment in Serbia

The fairs of Investment and Real Estate and Power Supply with Environment Protection have been declared open by the President of the Vojvodina Government, Mr Bojan Pajtić, PhD, and a welcome speech has also been given by the Vice-prime minister in the Serbian Government and the Minister of Economy and regional Development, Mr Mlađan Dinkić, MSc Mr Mlađan Dinkić said that it rested on the local self-governments how fast they would develop and how much foreign investment they would attract.

- In Vojvodina Novi Sad, Subotica, Vršac, Zrenjanin, Sremska Mitrovica, Inđija and Pećinci represent the leaders in attracting investments, however, this list end just about there.

According to Mr Dinkić, there are a lot of cities and municipalities that could and must do more in order to attract foreign investors. They should work more on interconnecting themselves through infrastructure, which they will get help for from the governments of Serbia and Vojvodina.

- It is very important that, while we are still living through the aftermaths of the economic crisis, we do everything possible to attract as much investment as we can to Serbia and Vojvodina. Without new investments, it is impossible to improve the foreign trade balance of Serbia, and consequently create macroeconomic stability, says Mr Dinkić.

The Minister of Economy has also confirmed that the inflation in Serbia is higher that it was planned and that the national currency is under pressure because Serbia imports much more than it exports, and that the only way to increase export is to attract new investors that would build new factories, employ more people and export a major share of the commodities.

The President of the Vojvodina Government, Mr Bojan Pajtić said that "Investexpo" has been a crying need for local self-governments to be able to present their investment potentials because this Fair has grown by 20 percent since last year.

He reiterated the fact that in the last ten years about 5.7 billion Euros of foreign investment had come to Vojvodina and that about 68,000 peple had been employed thanks to these investments.

- Foreign investor have to be adduced about the investment potentials as such that the profit made her, because of the taxation policy, financial stability, labour force and its quality, is much higher than that in the neighbouring countries, says Mr Pajtić.

The President of the Provincial Government also said that the cities and municipalities in Vojvodina participate in a wide range of projects from the pre-accession IPA funds of the European Union, but that the problem lay in the fact that they had not had funds to participate in them. With this in mind he announced that, through the Development Fund of Vojvodina, the Province would provide funds for a special credit line that cities and municipalities would be able to utilise for such purposes.

News source: EMG.rs link: article

Property market recovery in Bulgaria fuels mortgage lending growth

The slight revival of Bulgaria's real estate market has started moving mortgage lending, banks active mainly in the property loan segment said, quoted by Dnevnik. The trend has been prompted by the stabilising property prices, which already hit the rock bottom, thus encouraging clients to stop awaiting further drops and to resort to bank loans, according to market players.


Property prices declined 1.2% for July to September in quarterly terms, but marked a 6% drop compared with the same period of 2009, statistics data showed. The recovery in mortgage lending has also been fuelled by the lower interest rates on credits. According to UniCredit Bulbank CEO Levon Hampartzoumian, the country's property market has started to witness fresh deals, with prices not likely to decline sufficiently, depending mainly on the project’s location and infrastructure.


Sector player MKB UnionBank also considers that "property market is starting to rouse, which is also evident from customers' behaviour, who are increasingly interested in banks' offers for financing."
In addition, data of the Bulgarian National Bank (BNB) further proves that mortgage loans have registered the highest rise, showing a meagre 0.12% monthly increase in September but a stronger 4.7% growth in annual terms, MKB UnionBank added. According to DSK Bank chief executive Violina Marinova however, it is still early to define the recent trends on the market as recovery, despite customers’ growing interest in purchasing property and drawing loans.

News source: Dnevnik a.m. link:article

Brussels on Montenegro on December 16

The European Council will hold a session on December 16 and 17 in Brussels, and the application of Montenegro for receiving the status of a candidate for membership in the European Union, with the opinion of the European Commission, could be a part of the daily agenda. Heads of countries and governments of the European Union (who consist the European Council) will meet in Brussels.

If everything goes according to the plan, the candidate status for Montenegro could be discussed after receiving the opinion of the European Commission, but that possibility will be conditioned with a series of assumptions. One is that Germany will request the statement of German Bundestag before the decision.

News source: Limun.hr link: article

FINA: biggest profit by entrepreneurs in Zagreb, biggest loss in Dubrovnik

Last year’s results of entrepreneurs by municipalities and cities ranged from HRK 5.3bn in net profit in the City of Zagreb to HRK 518m in net losses in Dubrovnik, the Financial Agency (FINA) reports.

Zagreb is dominant according to profit. Rovinj is the runner-up with HRK 951.9m, while Karlovac has HRK 454.6m. The top 10 list is completed by Sveta Nedjelja (HRK 180.1m), Hum na Sutli (138.5m), Samobor (104.9m), Pula (97.4m), Vrbovec (84.2m), Cakovec (81m), and Labin (79.9m).

On the other hand, entrepreneurs in Dubrovnik posted a total of HRK 518.5m in losses. Vukovar follows with a loss of HRK 449.5m, Sibenik with 288.5m and Rijeka with 265.1m. Zagreb was the only among the four largest cities to record a positive result.

News source: Limun.hr link: article

TI: FYRMacedonia ranks 62nd in Corruption Perceptions Index

Transparency International" has ranked FYRMacedonia on the 62nd spot in this year's Corruption Perceptions Index (CPI) with 4.1 index score, which represents an improvement by nine spots compared to 2009. "Macedonia has continually registered a CPI improvement, but is still in the group of conuntries under five index points and there is still a lot to be done to achieve better perception", assessed Tursday Slagjana Taseva, president of Transparency Zero Corruption.

FYRMacedonia shares the 62nd spot with Croatia, Ghana, Samoa. In comparison with regional peers, Macedonia falls behind Turkey (56), but is ahead of Montenegro (69), Serbia (78), Albania (88), Bosnia&Herzegovina (91) and Kosovo (110). "Three-quarters of the 178 countries encompassed in the survey have an CPI lower than five. Declarative pledges in a large number of countries facing serious problems with high level of corruption do not yield results, whereas anti-corruption measures need to be implemented", assessed Taseva.

She announced Transparency International would release a report next year with a more realistic presentation of corruption, not its perception, for which a reevaluation of the methodology has been launched. "With governments committing huge sums to tackle the world’s most pressing problems, from the instability of financial markets to climate change and poverty, corruption remains an obstacle to achieving much needed progress", says "Transparency International" in its report.
The 2010 CPI, a measure of domestic, public sector corruption, includes a scale from 0 (perceived to be highly corrupt) to 10 (perceived to have low levels of corruption), indicating a serious corruption problem.

News source: EMG.rs link: article

Economical figures transport, Slovenia, 2009

Transport indicators by mode are publihed in SI STAT Data Portal. In 2009 there was 3 cars per 1,000 population more than in 2008. Their average age was 8 years. Indicators on persons killed in road traffic accidents were more promising as they were lower than in 2008. The Slovenian national carriers in road, railway and air transport carried almost 138 million passengers in 2009, which is 6% less than in 2008 and 28% less than in 2001. More than 1.4 million passengers were carried by planes in 2009, which is 14% less than in 2008. Passenger traffic in the Slovenian ports in 2009 increased by more than a half compared to 2008. Almost 78,000 passengers embarked and disembarked in 2009 which is one time more than in 2001. The number of embarked and disembarked passengers in 2009 was the highest until now.

Compared to 2008 in 2009 less goods were carried and less tonne-kilometres were performed in road and rail transport. The Slovenian carriers carried by road 75 million tonnes of goods or 17% less and performed 14.7 billion tonne-kilometres or 9% less than in 2008. 13 million tonns of goods were carried and 2,600 million toone-kilometres were performed  by rail or 24% less goods and 24 less tonne-kilometres then in 2008. The Slovenian airports and ports also recorded a drop in the traffic of goods (by 27% and by 19% respectively).

In 2009, only the Slovenian maritime carrier carried more goods (by 14%) but it performed 5% less tonne-kilometres compared to 2008. In 2009 there was 517 registered passenger cars per 1,000 population in Slovenia or 3 cars more than in 2008. Their average age was 8 years. Most cars per 1,000 population was in Goriška statistical region (581 passenger cars) and least in Zasavska statistical region (468 passenger cars). Average age of registered passenger cars was the highest in Spodnjeposavska statistical region (8,8 years) and the lowes in Osrednjeslovenska statistical region (7,4 years). In 2009, indicators on persons killed in road traffic accidents were more promising as they were lower than in 2008. Number of persons killed in road traffic accident per 10,000 population was in 2009 0.8 (by 0.3 lower than in 2008), number of persons killed per 10,000 registeren motor vehicles was 1.3 (in 2008 was 1.6), number of persons killed per 100 kilometres of public roads was 0.4 ( in 2008 0.6).

News source: Statistical Office of the Republic of Slovenia link: publication

Greek economy 'to shrink by up to 3%'

Greece's finance minister has said the country's economy will shrink by up to 3% in 2011, worse than previously estimated. "Growth will contract by 4% this year, and next year by between 2.5% and 3%," said George Papaconstantinou. The government's draft 2011 budget had forecast only a 2.6% contraction. He also said the country was not seeking to extend the schedule for repaying its 110bn euro (£96bn, $152bn) bail-out loan from the EU and IMF.

Speaking to the Associated Press news agency, the minister played down the issue of a payment delay - which he said was not up to the Greek government - but did not definitively rule it out.

"What is up to us is to do the best that we can to reduce the deficit and do the structural reforms," he said, adding that the government was not "at the moment thinking or proposing something else".
Greek government bonds fell slightly in morning trading. The difference in yield between 10-year Greek bonds and equivalent German bonds - a measure of their relative riskiness - increased to 7.5%, but remain well below their peak during the summer of nearly 10%.

News source: BBC News link: article

Belgrade airport air traffic control centre opens

The multi million Euro state of the art air control centre in Belgrade has been completed. Its opening this evening will mark a landmark change in air traffic control in the region. The new building, located next to Belgrade Nikola Tesla Airport, has 9.500 square metres and construction on the building began in March 2009. The building has been completed six months ahead of schedule. All the latest equipment is now being installed and controllers will move in from May 2011. A total of 500 controllers will be able to work at the same time inside the building and 4.000 aircraft will be handled per day. Belgrade control takes care of Serbia’s and Montenegro’s airspace, as well as 55% of Bosnia and Herzegovina’s airspace and the airspace above international waters of the Adriatic Sea.
The new building will be opened today at 18.00 CET by the Serbian Prime Minister, Mirko Cvetković. Also attending the grand opening are Serbian President, Boris Tadić, 20 directors from various European air control centres and high ranking officials from the Montenegrin Government.

The construction cost of the new air traffic control centre in Belgrade amounts to 19 million Euros while, together with the new equipment, the entire project tops 90 million Euros. According to the project manager, Belgrade now has the most up to date air control centre in the world and the largest control centre in the Balkans. Meanwhile, in another show of keeping up with the times Belgrade Nikola Tesla Airport will, from January 1, 2011, begin using an ePassport gate. The gate will allow Serbian passport holders to scan their passports and leave their fingerprint. If the fingerprint sample matches the one in their passport, passengers can proceed without any further passport control checks. Citizens from other countries that are holders of a biometric passport will also be able to use the gate instead of proceeding to passport control.

News source: EX-YU Aviation link: article

Bosnia: Majority of exports go to Germany and Croatia

Bosnia exports mainly went to Germany in the amount of 794m BAM or 15.2% of total exports, according to B&H Business Daily. Croatia was next at 784m BAM, or 15% out of total export.

The B&H Business Daily reports statistic agency numbers that Bosnia imported mostly from Croatia, in the amount of 1 billion and 489m BAM and from Germany in the amount of 1 billion and 40m BAM.

Export to Slovenia rose by 37.3%, to Germany by 32.4%, to Serbia 30.8%, Italy 22.6% and Croatia 8.3% compared to the same period in 2009. At the same time, there is recorded growth of import of goods from Serbia 11.3%, Croatia 8.1%, Slovenia 5.5% and Germany 0.9%, while import of goods from Italy decreased by 8.2%

News source: Balkans.com link: article

€146 million for energy saving, efficiency and renewable energy projects

On Tuesday the European Parliament's Energy Committee gave its green light to an agreement with the Council to free up €146 million of uncommitted funds to finance energy saving, energy efficiency and renewable energy projects. Amended legislation on the European Energy Recovery Plan (EERP) will channel the unspent money into a new fund, to finance projects such as:

    * renovations of public and private buildings to improve energy efficiency or switching to renewable energy;

    * the construction of renewables-based heat-and-power installations, with distribution networks, and their integration into electricity grids;

    * clean urban public transport solutions, particularly electric and hydrogen vehicles;

    * local infrastructure, including efficient street lighting, electricity storage, smart metering and smart grids.

 

The fund will focus chiefly on helping local and regional authorities to pay for such projects, which must be economically and financially viable, so as to refund the investment in due course. Contributions from the fund could take the form of loans, guarantees, equity or other financial products. Up to 15% of the funding may be used to provide technical assistance to public authorities to help set up the projects.  Geographical balance is to be an important criterion in the selection of projects.

News source: European parliament link: article

Regional unemployment rates ranged from 2.1% in Zeeland to 27.1% in Réunion

Regional unemployment rates varied widely across the EU27 in 2009, from 2.1% in the region of Zeeland in the Netherlands, to 27.1% in Réunion, a French Overseas Department. Between 2008 and 2009 unemployment rose in 90% of the 271 NUTS 22 regions of the EU27. Of these 271 regions, 28 had an unemployment rate of 4.4% or less in 2009, half the average for the EU27.

They included eleven out of twelve regions in the Netherlands, five regions in Austria, three in Italy, two each in Belgium, the Czech Republic and Germany, and one each in Bulgaria, Romania and the United Kingdom. At the other extreme, thirteen regions had a rate of 17.8% or higher, double that of the EU27: nine regions in Spain and the four French Overseas Departments. These data on regional unemployment, compiled on the basis of the EU Labour Force Survey, are published by Eurostat, the statistical office of the European Union.

News source: Eurostat link: publication

Technical failure at the Linked2Balkan website

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Nabucco: We don't accelerate spectacularly, but this is the only way to do projects of this kind

Nabucco, the gas pipe developed at European initiative to reduce dependence on Russian gas imports, has been overshadowed by the aggressive approach of Russians at Gazprom in the past few years, who make and break partnerships for their own gas pipe, South Stream. Nabucco representatives say projects of this kind are done in small, steady steps, and are certain building works will start in 2012.

"We don't take major leaps, we take small, steady steps. We don't accelerate spectacularly, but this is the realistic way to do projects of this size," says Christian Dolezal, spokesman for the Nabucco project. Nabucco shareholders are Transgaz (Romania), OMV (Austria), RWE (Germany), MOL (Hungary), Bulgargaz (Bulgaria) and Botas (Turkey). The maximum capacity of the pipe will be 31 billion cubic metres, it will cost 8 billion euros, and the pipe will be around 3,800-kilometre long. 

News source: ZF English link: article